Question: Question 2 [4 points] Consider two countries with the same level of potential GDP, say $100 billion, today. Suppose potential GDP grows at an annual

Question 2 [4 points] Consider two countries with the same level of potential GDP, say $100 billion, today. Suppose potential GDP grows at an annual rate of 5.9 percent in Country One and 3.5 percent in Country Two. Based on this information: Note: The growth rates will compound to determine real GDP. Keep as much precision as possible during your calculations. Your nal answer should be accurate to at least two decimal places. (a) What will the potential GDP be of each country 30 years from now? Potential GDP in Country One = $ billion Potential GDP in Country Two = 3; billion (b) What will the potential GDP be of each country 35 years from now? Potential GDP in Country One = $ billion Potential GDP in Country Two = 5 billion

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